Piper Jaffray analyst, Alex Zukin, reiterated his Overweight rating on shares of Zendesk (NYSE: ZEN) after taking the CEO, CFO & VP of Finance on the road to meet with investors. The analyst believes the company has strong visibility into its pipeline for the 2H16 and has taken a conservative approach with respect to guidance as visibility on the timing of enterprise deals is limited.

ZEN is looking to move more into the Enterprise which puts it in direct competition with CRM. Investors are concerned as they have seen firms in other markets attempt to take on CRM directly in the past only to see growth slow as deal cycles are elongated as CRM adjusts both its marketing and sales cannons on these companies. While the analyst shares these concerns, his thesis is that this is a very large market and ZEN has some meaningful competitive advantages that we believe are sustainable.

One dramatic data point that came out of the conversations is that 100% of Zen's leads today are inbound. Also, it appears the changes are having a positive impact as the sales organization has hit the ground running in July and the CRO is very excited about the energy in the sales org.

No change to the price target of $35.

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